This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Making great calls and being able to actually trade them for profit are vastly different skills.This may seem like a confusing statement, but it should be very obvious to those of you who trade actively. A great analyst can make millions of dollars a year at a hedge fund without ever executing a trade. You can find amazing chartists, fundamental experts, and technical analysis wizards on Twitter and beyond. Great analysts are valuable, can have an incredible feel for the market and its direction. They are great advisors.Most of them STILL lose money as traders.Like everyone else, they are emotional beings who fail when ego and money are on the line.Analysis and trading are worlds apart with regards to the skill set and discipline required to be successful. A great trader is far less concerned with their analysis, understanding that they are likely to be wrong. They are far more concerned with maintaining a zen-like emotional state while executing their trading plan, cutting losing trades quickly, and letting winning trades run. A great trader is defined by one who has a plan and sticks to it, come hell or high water. They plan their losses without day dreaming about potential gains.Success comes down to the trader, not the strategy that they employ to analyze trades. A good trader can make any analysis method work.Analyzing an asset is generally about identifying a likely direction and making a general prediction about price action. Trading is a far more in-depth pursuit. Not only does a trader have to accurately predict direction, but they also have to manage a stop loss (not get stopped out before the trade goes their way), decide when to take profit, how much to risk on the position and when to enter. Traders lose money all of the time, even when their idea is “right” because they have a misplaced stop loss or take profit order, have entered at the wrong time, or have sized their position incorrectly to accommodate for volatility.Eliminating ego and the inherent human compulsion to be “right” are invaluable skills for a trader. Right and wrong are meaningless in trading - what matters is profit, which comes as a result of strong conviction in a strategy and plan and iron-clad ability to stick to it once the trade is active.Great analysis is the first step to being a profitable trader, but is barely the tip of the iceberg. It is how you manage the risk based on that analysis that matters. Almost anyone can draw lines on a chart.Paper trade your butt off, find a system that works, then stick to it without emotion. Gauge your performance over years, not days. Be a robot. Protect your money at all costs.In This Issue:Traders Vs. AnalystsBitcoin Thoughts And AnalysisAltcoin ChartsSimplifying Crypto24 Million For a JPEGCoinbase Hack AvertedThe Crypto BowlMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #435 - Traders Vs. Analysts
The Wolf Den #435 - Traders Vs. Analysts
The Wolf Den #435 - Traders Vs. Analysts
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Making great calls and being able to actually trade them for profit are vastly different skills.This may seem like a confusing statement, but it should be very obvious to those of you who trade actively. A great analyst can make millions of dollars a year at a hedge fund without ever executing a trade. You can find amazing chartists, fundamental experts, and technical analysis wizards on Twitter and beyond. Great analysts are valuable, can have an incredible feel for the market and its direction. They are great advisors.Most of them STILL lose money as traders.Like everyone else, they are emotional beings who fail when ego and money are on the line.Analysis and trading are worlds apart with regards to the skill set and discipline required to be successful. A great trader is far less concerned with their analysis, understanding that they are likely to be wrong. They are far more concerned with maintaining a zen-like emotional state while executing their trading plan, cutting losing trades quickly, and letting winning trades run. A great trader is defined by one who has a plan and sticks to it, come hell or high water. They plan their losses without day dreaming about potential gains.Success comes down to the trader, not the strategy that they employ to analyze trades. A good trader can make any analysis method work.Analyzing an asset is generally about identifying a likely direction and making a general prediction about price action. Trading is a far more in-depth pursuit. Not only does a trader have to accurately predict direction, but they also have to manage a stop loss (not get stopped out before the trade goes their way), decide when to take profit, how much to risk on the position and when to enter. Traders lose money all of the time, even when their idea is “right” because they have a misplaced stop loss or take profit order, have entered at the wrong time, or have sized their position incorrectly to accommodate for volatility.Eliminating ego and the inherent human compulsion to be “right” are invaluable skills for a trader. Right and wrong are meaningless in trading - what matters is profit, which comes as a result of strong conviction in a strategy and plan and iron-clad ability to stick to it once the trade is active.Great analysis is the first step to being a profitable trader, but is barely the tip of the iceberg. It is how you manage the risk based on that analysis that matters. Almost anyone can draw lines on a chart.Paper trade your butt off, find a system that works, then stick to it without emotion. Gauge your performance over years, not days. Be a robot. Protect your money at all costs.In This Issue:Traders Vs. AnalystsBitcoin Thoughts And AnalysisAltcoin ChartsSimplifying Crypto24 Million For a JPEGCoinbase Hack AvertedThe Crypto BowlMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO